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The VPower power plant in Kyaukphyu Township, supported by China, is being dismantled and relocated amid escalating clashes between junta forces and the ethnic Arakan Army, which controls most of Rakhine State. The facility began operations in 2022 but was suspended in late 2023 due to insufficient natural gas supply and the junta's inability to pay for electricity.

The $140 million project is a joint venture involving VPower Group and CNTIC, designed to generate 150 megawatts but never reached full capacity. Relocation is nearing completion, with equipment transported by ship. Construction continues at another Chinese power plant in the area despite ongoing conflicts.